ASSIGNMENT

TOPIC: DEFINE PROJECT,PROGRAM AND PROJECT

PORTFOLIO WITH EXAMPLE
Submitted by: Usama shams
Syed jansheer shah (roll no 47343)

Submitted to: Madam ambreen

Class: BBA 4th
Subject: Money and banking
Department: Management sciences
What is a Bank Account?
A bank account is a financial account with a banking company, recording
the financial transactions between the customer and the bank and the
resulting financial position of the customer with the bank. It is an
arrangement whereby you may place your deposit under the
safekeeping of your bank or deposit taking financial institutions.
The bank as financial intermediary channelizes these funds in productive
resources and banks may pay remuneration out of profit they earn on
your deposits. Bank accounts can help you manage your everyday
money.
Types of Bank Accounts:
Banking institutions may offer a broad range of bank account types. By
learning different account categories, you can work out the choices that
suit your personal needs.
Current Account:
Current bank account is usually opened by businessmen who have a
number of regular transactions with the bank, both deposits and
withdrawals. Current account can be opened with any commercial bank
in Pakistan. In current account, amount can be deposited and withdrawn
at any time without giving any notice. It is also suitable for making
payments to creditors by using cheques. Cheques received from
customers can be deposited in this account for collection.
Features of Current Account:
 It’s a non interest bearing checking account,
 It has minimum account opening requirement (varies from bank to
bank).
 Some banks offer debit card which can be used to withdraw cash
and make purchases across Pakistan.
 It has no restriction on number of withdrawals
  Few banks offer mobile and internet banking facilities.
 Lets you set up direct debits and standing orders to pay your bills
or loan installments.
 It may offer you other services like an overdraft and funds transfer
facility.

Advantages of Current Account:

 Current account enables businessman to conduct his business
transactions smoothly.
 The businessmen can withdraw any amount at any time from their
current accounts.
 There are also no restrictions on withdrawals.
 The businessmen can make direct payment to their creditors with
the help of cheques.
 The bank collects money on behalf of its customers and credits the
same to their accounts.
 Current account enables the account holder to obtain overdraft
facility.
Savings Account:
A savings account is a financial account at a depository institution such
as a bank that pays interest on money that is saved. Savings accounts
typically have modest interest rates that are lower than rates offered by
fixed/term deposits. Saving account is a basic financial tool that is
considered as a part of any investment and savings strategy.
Features of Saving Account:
 It has minimum account opening requirement (varies from bank to
bank).
 No restriction on number of withdrawals and number of deposits.
 Profit on saving accounts is credited to the customer account on
periodic basis.
 Debit card can be used to withdraw cash and make purchases
across Pakistan
 Most of the banks provide Free Online Banking services at branch
network nationwide
Advantages of Saving Account:
  Saving account encourages savings habit among salary earners
and others who have
 fixed income.
 Saving account enables the depositor to earn income by way of
interest.
 Saving account helps the depositor to make payment by way of
cheques / checks.
 The bank offers number of services to the saving account holders.

Term/Fixed Deposit Account:

The account which is opened for a particular fixed period (time) by
depositing particular amount (money) is known as Fixed (Term) Deposit
Account. The term 'fixed deposit' means that the deposit is fixed and is
repayable only after a specific period is over. Under fixed deposit
account, money is deposited for a fixed period say six months, one year,
five years or even ten years. The money deposited in this account
cannot be withdrawn before the expiry of period. The rate of interest paid
for fixed deposit vary (changes) according to amount, period and from
bank to bank.
Features of Fixed Deposit Account:
 The main purpose of fixed deposit account is to enable the
individuals to earn a higher
 rate of interest on their surplus funds (extra money).
 The amount can be deposited only once. For further such
deposits, separate accounts need to be opened.
 The period of fixed deposits range between 15 days to 10 years.
 A high interest rate is paid on fixed deposits. The rate of interest
may vary as per amount, period and from bank to bank.
 Withdrawals are not allowed. However, in case of emergency,
banks allow to close the fixed account prior to maturity date. In
such cases, the bank deducts 1% (deduction percentage many
vary) from the interest payable as on that date.
 The depositor is given a fixed deposit receipt, which depositor has
to produce at the time of maturity. The deposit can be renewed for
a further period.
Advantages of Fixed Deposit Account:
 Fixed deposit encourages savings habit for a longer period of time.
  Fixed deposit account enables the depositor to earn a high interest
rate.
 The depositor can get loan facility from the bank.
 On maturity the amount can be used to make purchases of assets.
 The bank can get the funds for a longer period of time.
 The bank can lend such funds for short term loans to
businessmen.
 Fixed deposits indirectly boost economic development of the
country.
 The bank can also invest such funds in profitable areas.

Foreign Currency Accounts:

As a special facility, you can open accounts in foreign currency in
addition to PKR deposits. Accounts denominated in four foreign
currencies i.e. US Dollar, British Pound, Japanese Yen and Euro; are
allowed to be opened by financial institutions operating in Pakistan.
You can withdraw the amount either in Pak Rupee at current exchange
rate or in the denominated currency.
Features of Foreign Currency Account:
 Deposits only in foreign currency.
 No restriction on transfer of funds to any country abroad.
 Profit is paid to the foreign currency depositors.
 Traveler cheques and other remittances can be obtained by debit
to the account at current exchange rate.
 Credit card facility can be obtained by the account holders to the
extent of the balances held in their respective accounts, for
utilization in and outside Pakistan.
 Holders of foreign currency accounts are free to transfer their
accounts from one Authorised Dealer to another.
 Banks may recover reasonable charges on handling cash
transactions in foreign currencies received into or paid out of such
accounts.
 The non‐residents are exempted from payment of withholding tax
and compulsory deduction of Zakat.
Joint account:
A joint account is a special bank account which is opened in the name of
two are more persons.
A joint account functions just like a standard banking account, except
that two or more people own the account. You can use a joint account to
pool your money together. This is helpful with both saving—you can
save toward shared goals, such as a new home or vacation—and
spending. With a joint account, you and your partner can pay shared
household expenses, such as mortgage, car payments, utilities and
groceries, from the same place.
Withdrawing cash, writing checks and making online payments from one
account also allows both of you to see how money is being spent. That
can help you budget together as a couple. With account activity visible to
both of you, there may be less temptation to splurge on discretionary
items or make purchases in secret.
Opening a joint account can also help you take advantages of features
that may not be available to you as an individual account holder. That’s
because pooling your money may help you meet the minimum balance
requirements that qualify you for features like waived maintenance fees,
a higher interest rate or rewards.
If you decide to go in this direction, opening a joint account is a similar
process to opening an individual account. You and your partner will both
need to provide information and identification. You may also be able to
add one partner to another’s existing account. As co-owners, both of you
will be able to access and withdraw funds without the other’s permission,
and each of you will be able to talk to the bank about the account without
the consent of the other.
After you set up your account, you can decide how to manage and
monitor it, including whether you want to sign up for online banking,
which of you (or both) will receive account alerts, and if you’ll have
shared or individual online banking profiles.